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Fellow Bundesliga stars Arturo Vidal and Charles Aranguiz were also in the starting line-up for the defending champions, but with only a victory enough for Panama to go through, the Central Americans began at a furious pace. That appeared to catch La Roja off guard, with Miguel Camargo's dipping long-range strike squeezing past goalkeeper Claudio Bravo as early as the fifth minute.

FC Bayern München star Vidal, who netted a brace against Bolivia on Matchday 2, twice went close to grabbing an equaliser but missed the target each time. Vargas showed him how it was done, however, slotting in on the rebound in the 15th minute before executing a superb header into the bottom corner on the stroke of half-time to make Chile the first side to come from behind at this tournament.

Watch: Check out Vargas' Top 5 Bundesliga goals:

The 26-year-old was involved in Chile's third too, dinking an inviting cross from the right to Alexis Sanchez, who spectacularly volleyed home at the back post. That goal knocked the wind out of Panama for a while, but they set up a thrilling finale when Abdiel Arroyo pulled a goal back in the 75th minute. However, Chile's class told through in the end and Sanchez's second of the night late on rubberstamped the win to progress to the last eight.